Stelios in victory over easyJet pay

EasyJet founder Sir Stelios Haji-Ioannou has claimed a victory in his campaign
against the airline's former chief executive Andy Harrison, after leading a
shareholder revolt over a controversial £1m payment.

EasyJet founder Sir Stelios Haji-Ioannou has claimed a victory in his campaign against the airline's former chief executive Andy Harrison.Photo: PA

Boosted by the 38pc stake controlled by the Haji-Ioannou family, easyJet shareholders narrowly voted down the company's remuneration report at the annual meeting in Luton.

More than 172m votes were cast against the report, with 25.3m abstentions and only 162m in favour – though such protest votes do not compel a company to act on pay.

Sir Stelios opposed a six-month contract granted to Mr Harrison in January last year that ended up paying him £1m for just three months' work.

The board persuaded him to stay on for a short period while it found his successor, fearing the loss of its chief executive – after the departure of easyJet's former chairman and finance director following rows with Sir Stelios – could damage the airline.

The management upheaval coincided with a legal dispute with Sir Stelios, who was threatening to take away the carrier's brand.

Related Articles

Speaking at the annual meeting Sir Mike Rake, easyJet chairman, acknowledged "the concern expressed by some at the retention arrangements" but stressed they were "a one-off and agreed in unusual and difficult circumstances".

Sir Stelios made no reference to his role in creating such circumstances, saying the vote "proves beyond doubt that I am not the only shareholder who feels that Andrew Harrison's compensation package was undeserved".

He claimed some other shareholders, who were against the bonus, approved the report believing "the share price would benefit by putting all this behind us".

Asked if he would return the bonus, Mr Harrison, who is now the Whitbread chief executive, would only say: "I had a new fixed-term contract. It was signed by the chairman and approved by the board. There's nothing else to say."